The Obamacare premium tax credit depends of course on your income. Is there any adjustment to this calculation in the year you turn 65 and exit Obamacare for Medicare?

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2011) - All rights reserved. >>
<< ------------------------------------------------------- >>

--- SoupGate-Win32 v1.05
* Origin: fsxNet Usenet Gateway (21:1/5)

On 5/30/21 7:09 PM, Roger Fitzsimmons wrote:

The Obamacare premium tax credit depends of course on your income. Is there any adjustment to this calculation in the year you turn 65 and exit Obamacare for Medicare?

There is no adjustment per se. The calculations compute the annual
amount. That amount then gets spread equally by month. So, assuming you
stop the subsidy (advance premium tax credit) in the last month you have
ACA insurance, the tax return reconciliation to determine your net
premium tax credit (more credit or pay back money) will only use the
months you were on an ACA health plan.

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2011) - All rights reserved. >>
<< ------------------------------------------------------- >>

--- SoupGate-Win32 v1.05
* Origin: fsxNet Usenet Gateway (21:1/5)

On Tuesday, June 8, 2021 at 4:28:04 PM UTC-4, Alan wrote:

On 5/30/21 7:09 PM, Roger Fitzsimmons wrote:

The Obamacare premium tax credit depends of course on your income. Is there any adjustment to this calculation in the year you turn 65 and exit Obamacare for Medicare?

There is no adjustment per se. The calculations compute the annual
amount. That amount then gets spread equally by month. So, assuming you
stop the subsidy (advance premium tax credit) in the last month you have
ACA insurance, the tax return reconciliation to determine your net
premium tax credit (more credit or pay back money) will only use the
months you were on an ACA health plan.

So if you are on Obamacare for 6 months, your "Annual Contribution" will be calculated based on your full year's income, but then divided by 2? But if your income is significantly different in the first half of the year versus the second half, that
wouldn't be taken into account?

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2011) - All rights reserved. >>
<< ------------------------------------------------------- >>

--- SoupGate-Win32 v1.05
* Origin: fsxNet Usenet Gateway (21:1/5)

On 6/15/21 4:12 PM, Roger Fitzsimmons wrote:

On Tuesday, June 8, 2021 at 4:28:04 PM UTC-4, Alan wrote:

On 5/30/21 7:09 PM, Roger Fitzsimmons wrote:

The Obamacare premium tax credit depends of course on your income. Is there any adjustment to this calculation in the year you turn 65 and exit Obamacare for Medicare?

There is no adjustment per se. The calculations compute the annual
amount. That amount then gets spread equally by month. So, assuming you
stop the subsidy (advance premium tax credit) in the last month you have
ACA insurance, the tax return reconciliation to determine your net
premium tax credit (more credit or pay back money) will only use the
months you were on an ACA health plan.

So if you are on Obamacare for 6 months, your "Annual Contribution" will be calculated based on your full year's income, but then divided by 2? But if your income is significantly different in the first half of the year versus the second half, that

wouldn't be taken into account?

Reconciliation is based on your annual income. The resultant number is
then divided by 12 to get the monthly amounts. Assuming you timed it
perfectly, 6 months on and then 6 months off ACA insurance when you went
on Medicare, your 1095-X would just show data in the columns for January through June.

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2011) - All rights reserved. >>
<< ------------------------------------------------------- >>

--- SoupGate-Win32 v1.05
* Origin: fsxNet Usenet Gateway (21:1/5)